Asked by Jessika Patterson on Jun 02, 2024
Verified
What are the obligations involved in providing credit information?
Credit Information
Records or data related to the borrowing and repayment history of an individual or entity, used by lenders to determine creditworthiness.
- Understand the responsibilities and ethical considerations in providing credit information.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
Answers will vary. Replies to requests for credit information are usually simple-just fill in the blanks and return the document. If the request does not include a form, follow a deductive plan in writing the reply: the major idea first, followed by supporting details.
When providing credit information, you have an ethical and legal obligation to yourself, the credit applicant, and the business from which credit is requested. You must be able to document any statement you make to defend yourself against a defamation charge. Thus, good advice is to stick with facts; omit any opinions. "I am sure he will pay promptly" is an opinion that should be omitted, but include the documentable fact that "His payments are always prompt."
When providing credit information, you have an ethical and legal obligation to yourself, the credit applicant, and the business from which credit is requested. You must be able to document any statement you make to defend yourself against a defamation charge. Thus, good advice is to stick with facts; omit any opinions. "I am sure he will pay promptly" is an opinion that should be omitted, but include the documentable fact that "His payments are always prompt."
Learning Objectives
- Understand the responsibilities and ethical considerations in providing credit information.
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